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I can't agree with this pipe dream of a thread.
I agree that we're no better than 10 years ago, as 10 years ago, we had the first preview videos of "FF: Spirit Within", which is the only completely computer generated movie.
But I can't agree with the rest. It is a pipe dream, because it assumes that the job of video games is to reproduce reality. But it's not, like not at all.
The job of a videogame is to entertain, not to break some technology barrier.
Years of having to break limiting factors in video games have lead people to believe that video games are about technology. They're not.
There's no need for raytracing or any nonsense like that in videogames. If it comes without any additional cost, then no problem, but as über graphics are not a selling point for games, as I'm sure this generation will teach us, with the current additional costs incurred, video games will not be what push the graphics.

For now, the movie industry is pushing the graphics, and even there, they advance cautiously. Stupid Sakaguchi wanted to go too fast and nearly killed Squaresoft. Pixar is advancing slowly but surely.